KEY STEPS

National Economic, Environment and Development Study (NEEDS) for
Climate Change Project

The NEEDS Project was launched in response to SBI 28 mandate for the secretariat, to provide, upon
request, information on the assessment of financing needs of non-Annex I Parties to implement
mitigation and adaptation measures (FCCC/SBI/2008/8).
The main objectives of the NEEDS Project are to support the participating countries in:

Selecting key sectors for climate change mitigation and adaptation measures, on the basis of
priorities identified in the national communications and in national development plans;

Assessing the financing required and received to implement mitigation and adaptation measures in
the key sectors selected and identifying appropriate financial and regulatory instruments to support
these measures; and

Raising awareness and facilitating informed consensus among government agencies on the policy
actions required to mobilize finance and investment in mitigation and adaptation measures.

Methodology

The processes of and methodologies applied in the NEEDS were designed to ensure country ownership and
robustness of analysis. A country-driven process was promoted in order to facilitate national
consensus on adaptation and mitigation priorities across national development strategies and the
countries’ needs with regard to climate change.

In meeting the objectives of the study, the process applied by each country included dialogue with
national stakeholders and experts. Generally, countries first took stock of their Greenhouse Gas
(GHG) inventories and any previous adaptation and mitigation work completed in the country; this was
followed by extensive consultations with national stakeholders and experts in order to assess the
financial needs for priority adaptation and mitigation measures. Both high-level and sector-level
(technical) stakeholders and experts were consulted. Collaboration and cooperation between key
government agencies and key stakeholders was ensured and prioritized throughout the NEEDS process.

Reports and synthesis documents

Country reportsTen participating countries were able to submit their
final reports before the sessions under the UNFCCC in Cancun, in December 2010. By the end of March
2011, all eleven participating countries have submitted their national country reports.

Initial Summary ReportAn Initial Summary Report was prepared by the
secretariat and presented at a high-level side event (Climate Finance: Challenges and Opportunities
for Developing Countries) held in Copenhagen, Denmark, on 17 December 2009, on the basis of draft
national reports and initial findings.

Compilation and synthesis reportIn June 2010, at its 32nd
session, the SBI requested the secretariat to compile and synthesize the information contained in
the NEEDS reports of the eleven participating countries, with a view to considering its outcomes in
Cancun, December 2010, at the 33rd session of the SBI.

Current Status

At its 33rd session in Cancun, in December 2010, the SBI invited Parties to submit to the
secretariat, by 28 March 2011, their views on the synthesis report of the NEEDS and requested the
secretariat to compile the submissions into a miscellaneous document for consideration by the SBI at
its 34th session.The SBI also decided to continue its consideration of the NEEDS report at
its thirty-fourth session.

Hungary and the European Commission on behalf of the European Union and its member States

Uzbekistan

At its 34rd session in Bonn, in June 2011, the SBI took note of the views submitted by
Parties on the synthesis report on the NEEDS project. The SBI considered the outcomes, lessons
learned and recommendations which were identified by countries participating in the project. The SBI
invited United Nations agencies to continue supporting developing countries in assessing their
financial needs to implement mitigation and adaptation actions, in collaboration with the
secretariat, and to explore the possibility of organizing a workshop to exchange lessons learned and
methodologies, processes and tools used to assess financial needs.

The SBI considered that the issues identified in the NEEDS report, particularly on the proposed next
steps, relate to respective parts of decisions 1/CP.13 and 1/CP.16 and that the report therefore
could be used as input to the work of relevant bodies of the UNFCCC.